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GP visits down on $7 co-payment fears

Belinda Tasker

Confusion about the introduction of a $7 co-payment for GP visits appears to be putting some people off going to the doctor and others from having pathology tests.

Australia's largest medical centres and pathology services operator, Sonic Healthcare, has noticed a drop in the number of diagnostic tests it has been asked to carry out since the controversial co-payment was announced in the May budget.

The government is in talks about possible concessions for the planned co-payment, which it wants to introduce in July 2015 but faces stiff opposition in the Senate.

The head of Sonic Healthcare, Dr Colin Goldschmidt, says it appears many people already believe the co-payment has been introduced.

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"We do think there is a slight drop off in GP attendances," he said on Tuesday.

"There's also an element of people not doing their pathology requests as well.

"It's probably people thinking, `I've got to go to the GP, but I can wait for my pathology'."

Sonic runs more than 200 medical centres, Australia's biggest network of pathology labs, and is the country's second largest radiology provider.

Dr Goldschmidt said the fall in the number of people visiting GPs was mainly linked to those who would otherwise visit bulk-billing doctors.

Sonic believed the recent falls were temporary and was trying to analyse whether they were a direct result of fears about the $7 co-payment.

"I believe that other players are seeing the same phenomenon, so it must be market-wide," Dr Goldschmidt said.

Under the government's plans outlined in the budget, the $7 co-payment will apply to out-of-hospital pathology and imaging services, as well as GP visits.

But GPs will not be forced to charge the co-payment.

Dr Goldschmidt said if the co-payment was introduced, it would have far-reaching impacts for GPs, pathology and radiology services in Australia.

With Labor and the Greens firmly opposed to the co-payment, the government has been forced to seek the support of six out of eight Senate crossbench members.

Dr Goldschmidt's comments came as Sonic lifted its net profit by 15 per cent to $385 million for the year to June 30, while revenue increased 12.3 per cent to $3.9 billion.

Sonic is aiming to lift its underlying earnings by five per cent this financial year.

Dr Goldschmidt said Sonic remained on the look out for acquisitions, but was in no rush.

It also expected to benefit from the increasing trend around the world for governments and other healthcare providers to outsource some services.